Entrepreneurial dreams can evolve over time

Published: Thursday, April 18, 2013 at 8:53 a.m.

Last Modified: Thursday, April 18, 2013 at 8:53 a.m.

When you think about starting your own small business, what kind of business do you have in mind?

I don’t just mean what industry or sector you plan to go into — such as retail, hospitality or automotive — I want to know the size of your vision.

Do you see yourself growing an enterprise with dozens of employees or becoming a successful independent consultant? In other words, are you building a business or creating a job?

Picture three would-be entrepreneurs, each attending a workshop on starting their own businesses.

The first would-be business owner thinks: “I’ve been laid off from my job and can’t find another one. But I need to make a living. I’m good at what I do, willing to work hard. I’ll go to work for myself.”

The second one thinks: “I’m about to retire, but I’m not ready to play golf all day. I’m an avid photographer. I could charge some friends and acquaintances for taking photos at their weddings and events.”

The third one envisions something entirely different: She’s been working on a new invention. She thinks to herself, “If I can get the money, I know I can build a business that will make millions of dollars.”

Each of these entrepreneurs might say the same thing: “I want to start my own business.”

But they mean very different things. The first one wants to create a job, the second to make a bit of extra money, and the third wants to launch a company they could perhaps sell one day.

When I started my first small business, I fell into the first category.

I was looking for a way to be my own boss, to make enough income to support myself. But I sure didn’t want to have employees. For more than a decade, I was a self-employed consultant, a sole proprietor.

But eventually, I realized that as a consultant I was just selling my time. I had created a job for myself, but the minute I stopped working the money stopped.

That’s when I decided to start a different kind of business, not just have a job — even though it was a very good job. I wanted something of lasting value, not just current income.

Both of these goals were equally valid. It’s a terrific accomplishment to create a good job for yourself and earn an income. But if your goals are to sell your company eventually — or to grow your income substantially — you’ll have to stretch.

I’ve come up with visions for four types of businesses:

1. Actualizing Activity. You have other sources of income and don’t rely on the income from the business to survive.

You still want to work but don’t want a boss. You choose your business primarily on how it meets your personal interests and lifestyle.

2. Solo Sustainer. You are self-employed and the income you produce is critical to sustain you.

Solo Sustainer businesses are the most prevalent of small businesses and include consultants, hairdressers, construction workers, doctors and so on.

3. Balanced Business. You want to be your own boss, but you’re willing to be a boss to others as well.

You know you need employees to grow your company to a size that will not only provide current income but also be capable of being sold and providing greater value.

You want the business to be big enough to support growth but small enough for the owner to be able to control it.

4. Visionary Venture. You have lofty goals. You want to launch what is sometimes called a high-impact start-up — a company that will create a new product, service, even entire new industry.

Entrepreneurs who start Visionary Ventures hope to grow huge and one day sell the business or go public. They require greater amounts of money to finance their dreams.

Remember, just because a business is larger doesn’t mean it’s necessarily the right choice for you. When I decided to expand my Solo Sustainer company and start hiring employees, my responsibilities and my debts increased along with my prospects and opportunities.

So find the right kind of business for your needs and lifestyle. And remember, your goals may change over time, just as mine did.

Rhonda Abrams is president of The Planning Shop and publisher of books for entrepreneurs. Her most recent book is “Entrepreneurship: A Real-World Approach.” Register for Rhonda’s free newsletter at PlanningShop.com. Twitter: @RhondaAbrams. Facebook: facebook.com/RhondaAbramsSmallBusiness.

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